Jun 28, 2011
Landmark's cattle exports to increase
Landmark's exports of breeding dairy cattle are determined to increase as it begins to source stock from New Zealand instead of locally.
Landmark's exports of breeding dairy cattle are determined to increase as it begins to source stock from New Zealand instead of locally.
Last year, Landmark exported four shiploads of heifers from Australia, some 12,000 heifers, and one ship from New Zealand. But those numbers will now be reversed.
Landmark general manager Richard Norton said the shift is a response to unrest from Chinese customers, who are concerned about Australia's changing live export policies.
The Australian government recently banned live exports to Indonesia after complaints from animal rights activists about the welfare of livestock.
The government is also considering a new bill that would phase out live exports altogether over the next three years.
While Landmark is unaffected by the ban, Norton said its shift in sourcing was designed to mitigate risk and allay fears from Chinese customers.
"It is a direct response to the environment we are operating in during our risk assessment," he said.
"We sign long-term contracts with our customers in China where if we do not meet supply they have the ability to sue us under those contracts."
Landmark, which is now part of Canadian fertiliser giant Agrium, is also considering buying breeding cattle from Uruguay this year to meet demand from the steadily growing Chinese dairy industry.
However, the move to sourcing New Zealand breeding cattle may not be permanent, and Norton said it will depend on developments in Australian export policy.
"If the situation in Australia settles down, and some of these bills do not get passed, or if there is some reassurance given to the breeding sector of live exports, we would re-assess our schedule."
Landmark owns half of New Zealand farming supplies chain RD1 in a joint partnership with Fonterra.
